Central bank set to support China's FTZ
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E-mail Xinhua, December 2, 2013
China's central bank said on Monday that it has recently issued a guideline in offering financial supports for China's experimental free trade zone (FTZ) in Shanghai.
The guideline was issued to boost the real economy in the FTZ, provide financial support for cross-border investment and trade and deepen financial reforms, said a statement on the website of the People's Bank of China.
Of particular importance are its facilitation of financial exchange and assistance to enterprises in going overseas.
Another aspect is to promote the cross-border use of RMB, or the yuan, so that enterprises and individuals can trade in local currency to reduce exchange rate risks, the statement said.
It added that other efforts include boosting the marketization of interest rates and deepening reforms on foreign currency management.
The central bank also mapped measures to guard against risks and strengthen supervision over speculative capital in the FTZ.
The China (Shanghai) Pilot FTZ, launched in October, is a test ground for China's reforms. The zone has pledged to push for "a full-scale opening" of the financial service sector to eligible private capital and foreign financial institutions.
